The key themes at the leaders' summit in Brussels on Thursday were dominated by Ukraine and defense issues, as Hungary refused yet again to agree to a collective statement supporting ongoing military assistance for the conflict-ridden nation.
The main agenda for leaders was to address the competitiveness challenges of the bloc and find solutions, as well as initiate talks about the upcoming multi-year budget. However, these subjects took a backseat due to recent events related to the Ukraine conflict and the European Commission’s suggestions aimed at enabling countries to substantially increase their defense expenditures.
The executive’s strategy encompasses easing financial regulations to unlock an extra €650 billion for defense expenditure, along with a new initiative offering €150 billion in subsidized loans funded via collective debt issuance.
However, for certain capital cities, loans are insufficient.
Countries like Spain, Italy, Greece, Poland, and the Baltic nations are advocating for grants similar to what was done during the COVID-19 crisis. These grants differ from loans because they would be repaid jointly by all 27 EU members rather than being borne individually by requesting countries, thus easing the financial strain on those facing the greatest economic challenges.
However, The Netherlands continues to firmly resist any reference to grants, maintaining that the €150 billion loan program is the absolute limit they can accept.
At the same time, High Representative Kaja Kallas is finding it difficult to stay above water. her ambitious initiative To secure up to €40 billion in military assistance for Ukraine, which, if reached, would double the amount of support provided last year.
Review the happenings of the day in the live blog section below:
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